Food products giant,
ConAgra Foods Inc.
) hit a 52-week high of $35.05 on Mar 13 due to the recent
increase in its guidance. ConAgra has generated a return of
approximately 18.8% year-to-date.
This Zacks Rank #2 (Buy) company's long-term estimated
earnings per share growth rate is 7.9%. Average volume of shares
traded over the last three months came in at approximately
Increase in Outlook
In early February, ConAgra increased its earnings guidance for
2013 to $2.15 from $2.06 per share announced previously. The
outlook was upped on the back of an increase in contribution from
its business segments and the January closing of U.S.-based
private label food manufacturer; Ralcorp Holdings Inc.
This acquisition is a strategic fit to ConAgra as it will
boost up the revenue significantly. Management expects the
combined entity to garner sales of over $18.0 billion annually.
Also, starting from the fourth year, the company is expected to
derive cost synergies of about $225 million per year from this
acquisition. Moreover, Ralcorp is also expected to contribute
around $0.25 per share to fiscal 2014 earnings.
Moreover, earlier this month, ConAgra also inked an agreement
) and privately owned Cargill Inc. to set up a new joint venture
(a flour-milling company) called Ardent Mills.
In late December last year, ConAgra reported impressive
results for the fiscal second quarter 2013. Earnings per share
were recorded at 57 cents versus 49 cents reported in the
year-ago quarter. Results also surpassed the Zacks Consensus
Estimate of 55 cents.
The stock has gained continuous momentum following a string of
positive news events over the past 2-3 months. Estimates have
also been increased consistently over the past 60 days. The Zacks
Consensus Estimate for fiscal 2013 rose almost 2.9% to $2.15
while that for fiscal 2014 increased 6.5% to $2.46 over the same
Other Stocks to Consider
Other stocks worth a look in the food industry are
Chiquita Brands International Inc.
Flowers Foods Inc.
); both holding a Zacks Rank #1 (Strong Buy).
CONAGRA FOODS (CAG): Free Stock Analysis
CHS INC (CHSCP): Get Free Report
CHIQUITA BR INT (CQB): Free Stock Analysis
FLOWERS FOODS (FLO): Free Stock Analysis
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